EX-99.1 2 d77775dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

Palantir Reports 49% Revenue Growth; $117M in Cash Flow from Operations, up $404M Y/Y; and $151M in Adj. Free Cash Flow, up $441M Y/Y for Q1 2021


DENVER — (BUSINESS WIRE) — Palantir Technologies Inc. (NYSE:PLTR) today announced financial results for the first quarter ended March 31, 2021.

Q1 2021 Highlights



Total revenue grew 49% year-over-year to $341 million



US commercial revenue grew 72% year-over-year



US government revenue grew 83% year-over-year



Cash flow from operations of $117 million, up $404 million year-over-year, and representing a 34% margin



Adjusted free cash flow of $151 million, up $441 million year-over-year, and representing a 44% margin



GAAP net loss per share, diluted of $(0.07)



Adjusted earnings per share, diluted of $0.04

Q1 2021 Financial Summary


     First Quarter 2021  
(in thousands, except percentages and per share amounts)    Amount  


   $ 341,234    

Year-over-year growth

         Amount             Margin      

Loss from Operations

   $ (114,014     (33)%    

Adjusted Income from Operations

   $ 116,583       34%    

Cash Flow from Operations

   $ 116,881       34%    

Adjusted Free Cash Flow

   $ 150,975       44%    

Net Loss

   $ (123,474  

Adjusted Net Income

   $ 82,651    

Adjusted EBITDA

   $ 119,820    

GAAP Net Loss Per Share, Diluted

   $ (0.07  

Adjusted Earnings Per Share, Diluted

   $ 0.04    


For Q2 2021, we expect:



$360 million in revenue, representing year-over-year revenue growth of 43%.



Adjusted operating margin of 23%.

For full year 2021, we expect:



Adjusted free cash flow in excess of $150 million.

Per long-term guidance policy, as provided by our Chief Executive Officer, Alex Karp, we continue to expect:



Annual revenue growth of 30% or greater for 2021 through 2025.

Earnings Webcast

A public webcast will be held at 6:00 a.m. MT / 8:00 a.m. ET today to discuss the results for our first quarter ended March 31, 2021 and financial outlook. The live public call can be accessed by registering online at https://event.on24.com/wcc/r/3081658/AE03B253254D0E44DB21687E3F277890. A replay of the webcast will be available at https://investors.palantir.com following the event.

A slide presentation including supplemental financial information and reconciliations of certain non-GAAP measures to their nearest comparable GAAP measures will be available through Palantir’s Investor Relations website at https://investors.palantir.com.

Forward-Looking Statements

This press release and statements on our earnings webcast contain “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our financial outlook, product development, expected benefits of and applications for our software platforms, business strategy and plans (including strategy and plans relating to our sales force and partnerships), market trends and market size, opportunities (including growth opportunities), and positioning. These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts, and projections as well as the beliefs and assumptions of management. Words such as “guidance,” “expect,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “plan,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” “shall,” and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond our control. Our actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to risks detailed in our filings with the Securities and Exchange Commission (the “SEC”), including in our annual report on Form 10-K for the fiscal year ended December 31, 2020 and other filings and reports that we may file from time to time with the SEC, including our quarterly report on Form 10-Q for the quarter ended March 31, 2021. In particular, the following factors, among others, could cause results to differ materially from those expressed or implied by such forward-looking statements: our ability to successfully execute our business and growth strategy; the sufficiency of our cash and cash equivalents to meet our liquidity needs; the demand for our platforms in general; our ability to increase our number of new customers and revenue generated from customers; our ability to realize some or all of the total contract value of customer contracts as revenue, including any contractual options available to customers or contractual periods that are subject to termination for convenience provisions; our long and unpredictable sales cycle; our ability to successfully grow our direct salesforce and to successfully execute our channel sales and other strategic initiatives with third parties; our ability to retain and expand our customer base; the fluctuation of our results of operations and our key business measures on a quarterly basis in future periods; the seasonality of our business; the implementation process for our platforms, which may be complex and lengthy; our ability to successfully develop and deploy new technologies to address the needs of our customers; our ability to make our platforms easier to install and consume; our ability to maintain and enhance our brand and reputation; news or social media coverage about us, including but not limited to coverage that presents, or relies on, inaccurate, misleading, incomplete, or otherwise damaging information; and any breach or access to customer or third-party data.

The forward-looking statements included in this press release represent our views as of the date of this press release. We anticipate that subsequent events and developments will cause our views to change. We undertake no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release. Past performance is not necessarily indicative of future results.

Non-GAAP Financial Measures

This press release and the accompanying tables contain the non-GAAP financial measures income (loss) from operations excluding stock-based compensation and related employer payroll taxes (also referred to as “adjusted income (loss) from operations”); adjusted operating margin; adjusted free cash flow; adjusted free cash flow margin; adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA”); adjusted net income (loss); and adjusted earnings (loss) per share (“EPS”), diluted.

We believe these non-GAAP financial measures help us evaluate our business, identify trends affecting Palantir’s business, formulate business plans and financial projections, and make strategic decisions. We exclude stock-based compensation, which is a non-cash expense, from these non-GAAP financial measures because we believe that excluding this item provides meaningful supplemental information regarding operational performance and provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management team. Additionally, we exclude employer payroll taxes related to stock-based compensation, as it is difficult to predict and outside of Palantir’s control. Our definitions may differ from the definitions used by other companies and therefore comparability may be limited. In addition, other companies may not publish these or similar metrics. Further, these metrics have certain limitations, as they do not include the impact of certain expenses that are reflected in our consolidated statements of operations. For example, adjusted free cash flow does not reflect our future contractual commitments or the total increase or decrease in our cash balances for a given period. Thus, our non-GAAP financial measures should be considered in addition to, not as a substitute for, or in isolation from, measures prepared in accordance with GAAP.

We compensate for these limitations by providing a reconciliation of each of these non-GAAP measures to the most comparable GAAP measure. We encourage investors and others to review our business, results of operations, and financial information in their entirety, not to rely on any single financial measure, and to view these non-GAAP measures in conjunction with the most directly comparable GAAP financial measure.

A reconciliation table of the most comparable GAAP financial measure to each non-GAAP financial measure used in this press release is included at the end of this release. A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, reconciling items that may be incurred in the future such as stock-based compensation, and related employer payroll taxes, the effect of which may be significant.

Available Information

Palantir uses its Investor Relations website at https://investors.palantir.com as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor Palantir’s Investor Relations website, in addition to following our press releases, SEC filings, public conference calls, and webcasts.

About Palantir Technologies Inc.

Palantir Technologies Inc. builds and deploys operating systems for the modern enterprise. Additional information is available at https://www.palantir.com.


Investor Relations

Rodney Nelson



Lisa Gordon


Palantir Technologies Inc.

Condensed Consolidated Statements of Operations

(in thousands, except per share amounts)



     Three Months Ended March 31,
     2021   2020


   $ 341,234   $ 229,327

Cost of revenue (1)

     74,111     64,294








Gross profit

     267,123     165,033

Operating expenses:


Sales and marketing (1)

     136,097     98,653

Research and development (1)

     98,471     65,800

General and administrative (1)

     146,569     70,765








Total operating expenses

     381,137     235,218








Loss from operations

     (114,014     (70,185

Interest income

     376     3,267

Interest expense

     (1,840     (4,594

Change in fair value of warrants

     —         13,695

Other income (expense), net

     (4,894     6,100








Loss before provision for income taxes

     (120,372     (51,717

Provision for income taxes

     3,102       2,557








Net loss

   $ (123,474   $ (54,274








Net loss per share attributable to common stockholders, basic

   $ (0.07   $ (0.09








Net loss per share attributable to common stockholders, diluted

   $ (0.07   $ (0.10








Weighted-average shares of common stock outstanding used in computing net loss per share attributable to common stockholders, basic

     1,821,158     591,850








Weighted-average shares of common stock outstanding used in computing net loss per share attributable to common stockholders, diluted

     1,821,158     594,363










Includes stock-based compensation expense as follows (in thousands):


     Three Months Ended
March 31,
     2021   2020

Cost of revenue

   $ 15,977     $ 8,068  

Sales and marketing

     57,286     18,463

Research and development

     37,874     15,032

General and administrative

     82,594     12,544








Total stock-based compensation

   $       193,731   $   54,107








Palantir Technologies Inc.

Condensed Consolidated Balance Sheets

(in thousands)



        March 31,      December 31,
     2021   2020



Current assets:


Cash and cash equivalents

   $ 2,339,437     $ 2,011,323  

Restricted cash

     37,106       37,285  

Accounts receivable

     151,400       156,932  

Prepaid expenses and other current assets

     61,755       51,889  








Total current assets

     2,589,698       2,257,429  

Property and equipment, net

     27,378       29,541  

Restricted cash, noncurrent

     71,933       79,538  

Operating lease right-of-use assets

     213,331       217,075  

Other assets

     111,845       106,921  








Total assets

   $ 3,014,185     $ 2,690,504  








Liabilities and Stockholders’ Equity


Current liabilities:


Accounts payable

   $ 17,234     $ 16,358  

Accrued liabilities

     181,603       158,546  

Deferred revenue

     186,498       189,520  

Customer deposits

     250,181       210,320  

Operating lease liabilities

     32,110       29,079  








Total current liabilities

     667,626       603,823  

Deferred revenue, noncurrent

     44,998       50,525  

Customer deposits, noncurrent

     70,768       81,513  

Debt, noncurrent, net

     198,185       197,977  

Operating lease liabilities, noncurrent

     222,429       229,800  

Other noncurrent liabilities

     4,236       4,316  








Total liabilities

     1,208,242       1,167,954  








Stockholders’ equity:


Common stock

     1,860       1,792  

Additional paid-in capital

     6,892,046       6,488,857  

Accumulated other comprehensive income (loss)

     865       (2,745

Accumulated deficit

     (5,088,828     (4,965,354








Total stockholders’ equity

     1,805,943       1,522,550  








Total liabilities and stockholders’ equity

   $ 3,014,185     $ 2,690,504  








Palantir Technologies Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)



     Three Months Ended March 31,
     2021   2020

Operating activities


Net loss

   $ (123,474   $ (54,274

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:


Depreciation and amortization

     3,237     3,671

Stock-based compensation

     193,731     54,107

Change in fair value of warrants

     —         (13,695

Non-cash operating lease expense

     6,477     10,160

Other operating activities

     771     514

Changes in operating assets and liabilities:


Accounts receivable

     4,480     (51,403

Prepaid expenses and other current assets

     (9,753     (7,974

Other assets

     (4,865     (8,403

Accounts payable

     51     (40,790

Accrued liabilities

     44,488     (39,368

Deferred revenue, current and noncurrent

     (11,952     8,599

Customer deposits, current and noncurrent

     20,825     (132,077

Operating lease liabilities, current and noncurrent

     (7,132     (16,251

Other noncurrent liabilities

     (3     —    








Net cash provided by (used in) operating activities

     116,881     (287,184

Investing activities


Purchases of property and equipment

     (708     (3,016








Net cash used in investing activities

     (708     (3,016

Financing activities


Proceeds from the exercise of common stock options

     208,860     6,710

Repurchase of common stock

     —         (3,777

Other financing activities

     (2,506     (439








Net cash provided by financing activities

     206,354     2,494

Effect of foreign exchange on cash, cash equivalents, and restricted cash

     (2,197     (1,627








Net increase (decrease) in cash, cash equivalents, and restricted cash

     320,330     (289,333

Cash, cash equivalents, and restricted cash - beginning of period

     2,128,146     1,401,962








Cash, cash equivalents, and restricted cash - end of period

   $ 2,448,476   $ 1,112,629








Palantir Technologies Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures


Non-GAAP Reconciliations

Adjusted Income (Loss) from Operations and Adjusted Operating Margin (in thousands, except percentages)


     Three Months Ended
March 31,
             2021                      2020          

Loss from operations

   $ (114,014)        $ (70,185)    

Add: stock-based compensation

     193,731         54,107     

Add: employer payroll taxes related to stock-based compensation

     36,866         —       







Adjusted income (loss) from operations

   $ 116,583       $ (16,078)    







Adjusted operating margin

     34%        (7)%  

Adjusted Free Cash Flow (in thousands, except percentages)


     Three Months Ended
March 31,
             2021                      2020          

Net cash provided by (used in) operating activities

   $ 116,881         $ (287,184)    

Less: purchases of property and equipment

     (708)          (3,016)    

Add: cash paid for employer payroll taxes related to stock-based compensation

     34,802           —       







Adjusted free cash flow

   $ 150,975         $ (290,200)    







Adjusted free cash flow margin

     44%        (127)%  

Adjusted EBITDA (in thousands)


     Three Months Ended
March 31,
             2021                      2020          

Net Loss

   $ (123,474)        $ (54,274)    

Less: interest income

     (376)          (3,267)    

Add: interest expense

     1,840           4,594     

Less: change in fair value of warrants

     —             (13,695)    

Add: other (income) expense, net

     4,894           (6,100)    

Add: provision for income taxes

     3,102           2,557     

Add: depreciation and amortization

     3,237           3,671     

Add: stock-based compensation

     193,731         54,107   

Add: employer payroll taxes related to stock-based compensation

     36,866         —       







Adjusted EBITDA

   $ 119,820       $ (12,407)    







Adjusted Earnings (Loss) per Share, Diluted (in thousands, except per share amounts)


     Three Months Ended
March 31,
             2021                      2020          

Net loss attributable to common stockholders

   $ (123,474)        $ (54,274)    

Less: change in fair value attributable to participating securities

     —             (7,773)    







Net loss attributable to common stockholders, diluted

     (123,474)          (62,047)    

Add: stock-based compensation

     193,731           54,107     

Add: employer payroll taxes related to stock-based compensation

     36,866           —       

Less: income tax effect related to adjustments (1)

     (24,472)          (528)    







Adjusted net income (loss) attributable to common stockholders, diluted

   $ 82,651         $ (8,468)    







Weighted-average shares used in computing GAAP net loss per share, diluted

     1,821,158           594,363     







Adjusted weighted-average shares used in computing adjusted earnings (loss) per share, diluted (2)

     2,330,865           594,363     







Adjusted earnings (loss) per share, diluted

   $ 0.04         $ (0.01)    




Income tax effect is based on long-term estimated annual effective tax rates of 22.2% and 22.1% for the periods ended 2021 and 2020, respectively.


Includes an additional 510 million dilutive securities for the three months ended March 31, 2021 that are excluded from a GAAP perspective due to the Company’s net loss position. For the three months ended March 31, 2020, there were no such securities as the Company was in a net loss position on a GAAP and adjusted basis.